All eyes are on bitcoin (BTC). Prices are not showing good signals and concerns are growing among investors. But while some are desperately hoping for an increase, their wish is not about to come true. According to Jamie Coutts, the downward trend has not said its last word.
In short :
- The price of bitcoin (BTC) rebounds 0.60% during the day and hovers above $26,000, driving the price of most cryptocurrencies up.
- Bloomberg analyst Jamie Coutts thinks the flagship crypto is likely to continue falling until global liquidity increases
Warning, bitcoin (BTC) could go even lower
Bitcoin is the spearhead of the ecosystem. Some investors consider it to be the most important asset and this is not wrong, because it stands out for its market capitalization. However, being number one comes with many responsibilities, since it influences the price of other cryptos.
Since its peak at nearly $70,000, BTC has struggled to regain stability and has been oscillating downward. And if some are sure of a recovery, the Bloomberg analyst puts all hope to rest. According to Jamie Coutts, bitcoin (BTC) has reached its exit signal and is expected to continue its downtrend.
In a tweet, the analyst warns that the leading crypto is becoming vulnerable to the contraction in overall liquidity. Indeed, even if the latter slows down, it remains no less negative. Moreover, despite the recent increase in US liquidity, only a change in Fed policy could lead to an increase. In this case, only a reversal of the trend could cause an increase in the price of BTC.
A slight increase despite everything, a hope in sight?
Despite these estimates, bitcoin (BTC) proves that it has not said its last word. The crypto is up 0.60% and hovering above $26,000. Coincidence or market manipulation, the questions abound. However, this is a good sign for bitcoin supporters, although the increase is minimal.
Nevertheless, there remains hope, since the enthusiasm does not subside, and several factors could influence the course. Among other things, inflation and the approval of a bitcoin ETF. Without forgetting that the craze remains growing and despite the stability of the price, demand is increasing.
However, Jamie Coutts says the approval of an exchange-traded fund alone won’t be enough to boost prices. Until liquidity increases, investor demand for bitcoin (BTC) is expected to explode.
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